Unethical Firms Risk Massive Bills in EU Supply-Chain Crackdown
- Law would target thousands of businesses in EU and beyond
- Companies could be sanctioned if they violate ethics standards
Under the EU measures, firms would need to show they’re checking on labor violations, health and safety, child workers or environmental breaches.
Photographer: Jan Sochor/Getty Images
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Global firms from mining to fashion risk massive compensation payouts in a proposed European Union crackdown on human-rights abuses and environmental breaches set to be unveiled this week.
The ethical supply-chain rules, which target some 4,000 international businesses and 13,000 inside the 27-nation bloc, would allow victims to sue for compensation if companies or their suppliers don’t halt violations, according to draft EU documents seen by Bloomberg News. The proposals could still be changed before they are finalized.